Fdi Setup — CA Guides & Articles

Only four instruments count as FDI under the NDI Rules. A SAFE is not one of them — and using one turns a simple round into a FEMA contravention.

Buyback is not a discretionary decision in India. Section 68 caps, NCLT capital reduction, FEMA fair-value pricing and the 2024 tax shift all apply.

Granting global options to your India team is the easy part. The half-yearly Form OPI filing, payroll withholding at exercise, and Schedule FA are not.

Using an Employer of Record to hire in India feels like a hiring decision. Under FEMA and DTAA permanent establishment rules, it is not.

You do not need an Indian entity to have a Permanent Establishment. Here is what Article 5, the MLI, and Section 9(1)(i) actually require.

Money leaving India to buy foreign equity follows a different rulebook from FDI. The OI Rules 2022 route map: ODI vs OPI, Form FC, UIN, and the 400% cap.

Press Note 3 catches you through your investors' investors. Here is the beneficial ownership test, the 2026 safe harbour, and how to stay on automatic route.

RBI's draft Foreign Investment Rules 2026 will replace the NDI Rules 2019 — what changes, what stays, and what foreign founders should do now.

When Indian tax authorities raise a transfer pricing adjustment, most foreign groups assume the fight is purely domestic. India's DTAAs include a MAP (Mutual Agreement Procedure) channel — Article 25 — that lets your home-country tax authority negotiate directly with CBDT to eliminate double taxation. The window is 3 years from the first TP adjustment notice; missing it forecloses bilateral relief permanently.

Foreign groups assume shared costs split "at cost" are tax-safe in India. They aren't — Section 92 tests every allocation.

A parent-to-subsidiary loan into India is priced by two regulators at once: RBI's ECB all-in-cost ceiling and transfer pricing's arm's length rule.